China Ranks Second in Investment in Uganda

China has emerged as the second biggest foreign investment contributor in Uganda for the year of 2009 despite the global economic downturn, said a report released by Uganda Investment Authority (UIA) on Thursday.

"Despite the general economic downturn around the world, Britain and China have continued to be the best investors in Uganda," Maggie Kigozi, the executive director of UIA, told a press conference here.

According to the report ranking country sources of investment for 2009, Britain established 20 projects in the country with a total planned investment of 267 million U. S. dollars, creating 3,958 jobs. China invested 213 million dollars on 40 projects with planned employment of 6,117.

"China is becoming our biggest investor. They are coming with more money and new technology," she said.

India and Russia with 43 and 1 project invested 130 million dollars and 67 million dollars with planned employment of 4,710 and 3,025 came third and fourth respectively. The other top contributors include Kenya, the United Arab Emirates, Japan, Eritrea, Nigeria, Ireland and Sudan.

Meanwhile, Ugandans established 171 projects with planned investment of 655 million dollars, creating 35,961 jobs, according to the report.

Overall, UIA in 2009 licensed 354 projects in various sectors, with a total planned investment of 1.6 billion dollars, creating some 70,289 jobs for Ugandans.

"This is the first time that the 70,000 planned jobs mark has been achieved. Uganda is one of the fastest growing economies and one of the most liberal countries for foreign direct investment," said Aston Kajara, the state minister for investment.

He said UIA is going to continue with its outward missions to attract more foreign investors into the country.

"There is need to draw up a strategy for sustained attraction to Uganda's business opportunities if we want to continue experiencing the increasing trends in investments," said Kajara.

Uganda will host the third East African Investment Conference in April 2010 with a primary objective to spur the investment in the region, he said.